this is "nightly business report" with tyler mathisen and susie gharib brought to you by. >> sailing through the heart of historic cities and landscapes on a river, you get close to iconic landmarks, to local life, to cultural treasures. viking river cruises, exploring the world in comfort. midsummer strategy, august historically one of the worst months for stocks but is there a smart way for you to invest during the dog days of summer as others head to the beach? >> power players, in a huge switch the u.s. is a refiner to the world and a hand full of companies are helping lead the charge. shopping spree, we all like the idea of buying american products but finding them is a different story. so we hit the mall to see for ourselves in our special series made in america. we have all that and more tonight on "nightly business

report" for wednesday, august 7th. good evening everyone and welcome. call it the summer stumble. it doesn't qualify as a swoon or full fledged sale off yet but u.s. stocks fell dropping like dominos. japan notably declined 4% as the yen rose against the dollar. here in the u.s. investors seemed unsettled by reoccurring fed chatter thinking the u.s. may scale back stimulus in september maybe not. if not, maybe the end of the year. either way, investors didn't like it. the dow dropped 48 points and the nasdaq to 3654 and the s&p 500 closed at 1690 and change. since 1987, august is the worst month for stocks, so what should investors do?

joining us with his thoughts, global market strategist at jp morgan funds. andres there is a summer lull. what is the smart thing for investors to do? do you buy, sale, just sit tight? >> for the active investor, short-term investment horizon nobody wants to be a hero this august considering how strong the markets rallied. if you're a long-term investors it opens opportunities, for instance european equities we think they under performed the u.s. equity market and economies not in good shape but going from really bad to just bad and that momentum is what you look for to generate outside returns in the years to come. >> how much of a typical investor, and i realize there is no such thing as a typical investor but how much of a

typical investor's portfolio should be in overseas securities? >> that's a great question. it matter what is your risk aversion is. european equities will be more volatile. there is more uncertainty not only about their economy but earnings. that's a reason i think there will be a higher expected return. having said that, if you look at the u.s., earnings are not growing rapidly but there is more certainty about them. therefore, volatility we don't expect to be as high. depends who the investor is. having said that, between those two i think european equities offer more opportunity on the sup side. >> the last time you were on. we were talking about emerging markets and you were cool to the countries like brazil and russia, india, china. how about now? we heard in the earning season mixed reports from ceos talking about growth opportunity for the slowdown in china. is this an investor opportunity,

or is it too soon? >> unlike august here in the united states where it is a bit of just a soft patch when it comes to everyone at the beach, in china the cool off could last not just for the summer but well into next year. so i don't see it just quite yet the opportunity. we're not quite at a place i feel comfortable becoming over weight in china. >> what do you make of this little stumble we've had it for three, believe it or not, three days in a row. >> right. >> of u.s. equities sliding a bit? i gather your view, medium and long-term on the u.s. economy is pretty good and hence, for u.s. stocks, as well. >> sure, i think the catalyst for the recent run up to really last week had been earnings. earnings have not only met expectations but really beat them and that catalyst is drawing to a close. we're almost done and at this point i wouldn't read too much into the daily volatility of the market because volume is low. come september, i think everyone

will come back to play and that's really going to dictate where the rest of the year goes for equity. >> there is something about september, there is mentality of getting serious again, back to school, whatever. the theme so far this year for investors is buy now and sell higher later. do you see that theme changing come september? >> yeah, i think that if you have to take a step back and say if i have a new dollar, where do i think there is the best place to put it? we think equities is the best place. august or september, that's still our thesis and that this is a thesis we think will go on for years, not just months. >> you talked about dabbling into european stocks and i think most individual investors wouldn't know how to pick a u.s. stock, let alone european. is it best to go through a fund or atf? >> you have to be selective in europe. we may like german autos but not german banks now. with sectors you might want a

specific stock over another. active management is important. you need professional help to your point. it is very volatile and you better have hand holding along the way to make sure you pick the right company. >> thanks for hoand holding tonight. consumers are borrowing more, especially for cars and to attend school borrowing rose more than $13 billion in june. for may the report showed many americans aren't using their ted d -- credit cards as much shying away from taking on high interest debt. oil prices rose more than 10% this year closing above $104 a barrel. but those are pinching refiners. now the big names will looking for new ways to make money and producing more of what the world wants, a lot more and it's working. jack jackie dean gles looks it.

>> reporter: two years ago the united states reached a milestone. the company began exporting for petroleum products than it imported. the u.s. leads the world and the pace is astonishing. u.s. oil exports doubled. driving the export boom, shipments of diesel overseas to feed growth and emerging markets. u.s. refineries shipping diesel and jet fuel to places like mexico city and chile. >> part of it is the environment side of things but a lot of it is to do with diesel and gas oil is more than gasoline, not only use in transport it's also used in industry and power generation. >> reporter: increasing diesel production and exports coming at a time when gas demand is faltering. >> gasoline demands is in our view in a struck well long-term decline. it's a few years of high prices

and another one the hanger from the economic recession but there are two other big factors. one is fuel efficiency. the standers are having a real effect and have been extended forward by the president, and the other big one is actually d demographic change. >> reporter: that trend is proving to be profitable. valero saying it makes twice as much on a barrel of diesel than gas. that's why gulf coast refiners are trying to capture the difference. shell, marathon petroleum and valero racing to raise diesel capacity. valero is making significant investments looking to produce as much diesel as gas by the end of 2015. and gulf coast refiners are benefitting from this trend more than the east coast counter parts because domestic shipping costs are prohibiting from

tapping into u.s. oil supplies and those are to rely on international oil, which makes them less competitive. freddy mac, the taxpayer controlled company and president obama and several others would like to unwind, the second largest quarterly profit in the history. the firm earned $5 billion. followed by higher loan fees. they will make a dividend payment to the u.s. treasury on more than $4 billion 6789 4 bil. jp morgan and glen core are the latest companies to be accused of artificially inflating aluminum prices. it was filed on behalf of master screens, a direct purchaser and individual who is described as a buyer of beverages sold in

aluminum cans. according to a report yesterday from the center for disease control the obesity rate among low-income preschooler social securis is falling. it went from $74 billion in 199 8 to $147 billion. this study could have important economic implications. >> reporter: the centers for disease control tracked the height and weight of nearly 12 million low income 2 to 4-year-olds. between 2008 and 2011 obesity rates stayed the same or decreased in 40 states and territories and only went up slightly in three. for weight management experts like dr. scott cohan it is good news. he struggled with weight as a child. he was 25 pounds over eight at

age 11. >> anything we can do to push forward on addressing obesity and related chronic diseases is going to be not only a health triumph but also have large economic benefits to society. >> reporter: despite these encouraging results, that same cdc study says obese children are much more likely to become obese adults. and the cost of both the economy and society continues to increase. $190 billion in annual medical cost, double previous estimates. a mayo clinic study of it's own employ yeees said it's spenting $1850 more a year on over weight than healthy. $5530 more a year for medical cost for a male worker with a body mass index above 30. the threshold of being classified as morbidly obese. >> it puts us at risk for

diabetes and high blood pressure and heart disease. >> i'm getting moving right now by jogging. >> reporter: kid friendly health messagesobama's let's move campaign are helping and emphasizing importance of fruits and vegetables also helped. obesity remains an epidemic but the cdc says for the first time in a generation, the tide is beginning to turn. for "nightly business report" i'm hampton pearson in washington. still ahead, how the relatively new and fast growing 3 d printing industry is changing the mold of manufacturing and creating opportunities for investors. but first, look how the international markets closed today.

yahoo is getting a make over. the company is changing the logo for the first time in two decades and will unveil the redesign next month. for the next 30 days they will showcase 30 different logos on the home page. there you see some of them. the new logo will be modern but fear not that exclamation point part of the name is staying. now to the on going cbs time wanner cable battle where politicians are demanding an end to the blackout. ed markey is asking the fete red communications commission to step in and restart negotiations. he said i believe the public interest would be served best if it's restored at the earliest time so consumers are not long caught in the middle. more than 3 million timewarner customers have been without cbs since friday and they carry a lot of new england patriots

games. >> we begin with earnings from timewarner. profits surged 25% as "the great gatsby" and more. timewarner raised the earnings and will spin off it's time inc. shares 63. 84 but up 34% this year. aol reported earnings and revenue that beat estimates but not just better than expected numbers that grabbed online com tv for $405 million. it will help it integrate advertising with video content. >> advertising the last 100 years is bought in bulk. we believe the future of advertising will be bought where

you understand the individual asset you're buying and you're able to plan, target, measure and do deep data around advertising. >> investors like that news and shares rose almost 1.5% to $36.69. shares of ralph lauren hit hard today as they issue a sales outlook. the company's brands include polo and club monaco says it see as low single-digit rise while expectations around 7%. one of the worst performers down more than 8.5% to $173.13. people were driving home with new tests and it showed in the quarterly earnings today. the electric car maker said it delivered more vehicles than expected during the quarter. tesla will deliver thousands of vehicles this year. the stock closing at $134.20,

down by 5% and popped after hours and is up nearly 350% this year. a busy end to the day after the close. the kraft food spin off expect a ed quarterly earnings and going to $6 billion and that is a lot of cookies. mondelez fell to $31.26 in the regular session but got it all back and then some after hours. here is a new trend investors are talking about, 3 d printing. it's a small but growing force in manufacturing. the technology can be used to produce almost anything by anyone from shoes to car parts to medical devices from just about anywhere. it sounds futuristic but a reality creating opportunities for businesses and investors. marry thompson reports. >> reporter: 3 d print sg breaking the mold.

parts are built in a single step and some are so affordable, consumers are getting in the game making their own toys. >> with 3 d printing, craftsmanship it's libber rating. >> reporter: he is ceo at 3 d systems. his company makes 3 d printers ranging from the cube for consumers to bigger models that sell for close to a million dollars. rapid growth feeling a rapid rise in 3 d stock. some say a bubble is forming but the industry 30 years in the making with a long runway ahead. >> it will become more sustainable because you'll make what you need when you need it and as you need it as close to the point of consumption as possible. >> reporter: 3 d printers built by additive rather than subtractive, metal, plastic or other materials are layers to create finished products using

lasers and more. the appeals and designs and protoe tapes can be changed quickly eliminating waste and compressing the time between computer screen and final product. for ge in the soon to be tested leap jet engine it means big savings. here is leap director garrett richards. >> we're saving probably 50 to 75% in total cost that can be both material cost. it can be labor. it can be the design time. the cycle time savings are measured in weeks and months. >> reporter: the industry spent over 24% in each of the last three years. while 3 d printing's market is prototyping for the medical or auto industries, the near term growth is production of complex parts for the aerospace industry, prosthetics and consumer space. 3 d printing turning

manufacturing on the head building from the inside out and the bottom up. in south carolina, i'm mary thompson. "nightly business report." a growing number of retailers and manage fracturers want you to buy products made in the u.s. we had to go inside some of the most recognizable stores in the country to see how many products are actually made in america. but first, a look at how commodities, treasuries and currencies performed today. some positive news for the detroit area tonight. chrysler announced plans to spend $52 million on two plants located south of the city. the investment will add an

asemiblee line. and the auto maker will also be hiring, nearly 300 jobs. well, there is a renewed push in this country from big retailers to small manufacturers to buy products made here in the u.s. but may be easier said than done. jane wells goes on a shopping spree to see how hard it is to buy american. >> careful. >> reporter: shopping these days is like going to the united nations, the whole world is in your cart. pakistan, china, usa. >> reporter: do we care where most things come from? >> made in america. made in thailand. made in canada. >> reporter: nearly half of americans say they would be more likely to buy a product if stamped made in the usa. 60% of consumers would be willing to pay an extra 10% for american made. >> i don't pay attention to where it was created.

>> sometimes i do, sometimes i don't. >> i would like to see more products made in the u.s. but at the same time i know there is a will be. >> if there is a choice, i would prefer it. >> reporter: it's not clear how we mutt our money where our mouths are. >> made in indy knee sha. >> reporter: home depot gave us free reign to check. what may surprise you is stuff that goes under your walls or on the floor is made in the usa like lumber, concrete, drywall. on the other hand, all host all the light mixtures made outside of the country, this is china, china, china and china. black and decker, an american company made in china. dewalt made in china. toilet made in china. toilet seat in america. china, how cute is this?

sourcing practices are changing to balance quality with price. this is interesting, elmer's glue made in usa but the stick is made in china. made in the usa and somehow that comforts me. out of curiosity, these are made in the usa, too. barbie, the all american girl is a actually made in china. one thing in both stores does not, the american flag still occasionally made in the usa. our made in america series continues tomorrow with a look at why some small businesses say buying imports, not american is the best way to boost the economy. finally tonight, lottery fever is here and spreading. the powerball jackpot is at $425 million, the fourth largest payout ever. the winner could get a lump sum of $244 million.

the odds of winning are 175 million but that's not stopping people from lining up for a chance to strike it rich. now if no one wins tonight, the jackpot -- if no one wins tonight the jackpot could sore to record territory. the all time record $656 million was split between three ticketholders in march of 2012. we want to hear from you whether you're a mega millions winner or not. send us the one stock you would like the market monitor guest to discuss on friday. go to nbr.com and see the link and submit your question and don't forget to include, please, where you are from. so are you going to buy a ticket? >> of course, of course, i would donate the proceeds to nbr. >> you didn't win. >> that's "nightly business report" for tonight. thanks for watching, please rep, support your public television station. >> on behalf of your public

television station, thanks for your subpoena port and lottery winnings. hope to see you back tomorrow night. "nightly business report" has been brought to you by. >> sailing through the heart of historic cities and landscapes on a river, you get close to iconic landmarks, to local life, to cultural treasures. viking river cruises, exploring the world in comfort.

announcer: major funding for a salute to vienna was provided by trafalgar. announcer: explore the world... meet local people... uncover hidden treasures. journeys of discovery open your eyes to new possibilities. trafalgar, proud sponsor of a salute to vienna. additional funding was provided by the vienna tourist board. announcer: explore new worlds and new ideas through programs like this, made available for everyone through contributions to your pbs station from viewers like you. thank you. announcer: next, a musical celebration of vienna! join us for a gala evening of song, dance... and romance. [singing]